๐ซ How to Avoid Liquidation Like a Pro ๐ผ
1. Use Low Leverage (or None)
Pro tip: 2xโ5x max, even lower if you're new.
High leverage = high risk = higher chance of liquidation.
2. Set a Proper Stop Loss
Don't "hope" it bounces โ set a stop-loss level before entering.
Example: If you're 10% away from liquidation, set SL at 5โ7% loss.
3. Risk Only 1โ2% of Your Capital Per Trade
Donโt go all-in. Pros trade small but smart.
Use position size calculators to determine how much to risk.
4. Donโt Trade Without a Plan
Define:
Entry
Take Profit
Stop Loss
If it doesnโt fit your setup, skip it. No setup = no trade.
5. Track Liquidation Price
Know where your liquidation price is at all times.
Adjust your leverage or add margin if it's too close.
6. Use Isolated Margin
Use isolated margin instead of cross to protect your whole account from one bad trade.
7. Scale In & Out
Donโt enter full size at once. Enter in layers.
Same for taking profits โ book partial gains as price hits targets.
8. Avoid Trading in Extreme Volatility
Stay out during major news, Fed announcements, or high-impact events.
Liquidity drains and slippage increase risk.
9. Learn to Read Trends
Donโt short a strong uptrend. Donโt long a free
